Spirit Airlines' pilots and flight attendants have ratified new two-year contracts with pay concessions worth an estimated US$100 million annually to help the carrier emerge from bankruptcy, reports London's Flight Global.

Leaders of the Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA) backed the agreements, which Spirit Aviation filed with the US Bankruptcy Court in New York for approval. The company is under court supervision for the second time in a year.

The revised contracts take effect on January 1. ALPA represents about 3,100 pilots and AFA covers 5,300 attendants. Spirit said the deals provide stability and predictability, enabling the airline to compete more effectively in a difficult market.

The pilot agreement is expected to save $85 million annually through an 8 per cent cut in hourly pay and reduced retirement contributions. Wages and retirement payments are scheduled to return to prior levels beginning in August 2028, after the agreement expires, though both sides expect to continue working under its terms during negotiations.

The flight attendant contract will save $15 million annually by reducing overtime and holiday pay, eliminating pay during ground holds, and revising scheduling provisions.

Both unions ratified the deals on 11 December. ALPA council chair Ryan Muller said the vote represented pilots' direct investment in Spirit's future, providing the company with what it needs from labour to secure financing and complete restructuring.